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Thornbrough Corporation produces and sells a single product with the following characteristics: Percent of Per...

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Accounting

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Thornbrough Corporation produces and sells a single product with the following characteristics: Percent of Per Unit $220 Selling price Variable expenses Contribution margin Sales 1008 20% 80% $176 The company is currently selling 7000 units per month. Fixed expenses are $901,000 per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $65,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $1,269,500 increase of $37,500 increase of $61,700 decresse of $92.500

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